- Tesla has mounted a major rebound in retail FOMO trading as its stock has doubled in five weeks.
- According to Wanda Research, the total inflow of retail investors in the stock market has reached the last level of 2020 and 2021.
- “Tesla continues to drive unprecedented retail flows,” Wanda said, in front of CEO Elon Musk’s master plan.
The stock market has seen a resurgence in retail trading so far this year as a broad rally helped offset some of the brutal losses from 2022.
Much of the rebound in activity, hitting levels last seen in 2020 and 2021, is being driven by Tesla, according to a Thursday note from Wanda Research, indicating that the stock has beaten all single- Represented a quarter of the stock purchases. Last week.
It’s little surprise that retail investors have been flocking to Tesla lately, as its stock has more than doubled from a low of $101.81 in just five weeks.
Wanda Research wrote, “Tesla continues to attract unprecedented retail inflow… We believe retail traders are currently chasing momentum in the stock, aiming to recoup losses through 2022.”
And the buying frenzy for Tesla stock could continue in the coming weeks as investors prepare for the electric vehicle maker’s Investor Day on March 1, when CEO Elon Musk will reveal his Master Plan 3.
“Master Plan 3, the path to a fully sustainable energy future for Earth will be presented on March 1st. The future is bright!” Musk tweeted on Tuesday.
Wanda Research expects retail flows to maintain its momentum until the event, then lose steam afterward, similar to the trading activity seen in past stock splits or the big shows at Tesla’s annual meetings.
Also, there has been a boom in retail trading activity in artificial intelligence following the release of ChatGPT, which has helped investors more fully understand the technology’s potential.
Shares of Nvidia, and to a lesser extent Microsoft, are exposed to artificial intelligence and have seen their share prices soar so far this year.
“Interest in this topic is still high,” said Wanda Research. “Both companies are involved in the AI industry and are experiencing growing interest from individual investors.”
According to the note, Tesla could fuel the next phase of interest in these artificial intelligence stocks as traders seek to lock in profits and put money to work elsewhere.
“Should Tesla’s share price continue to rise sharply, major retail traders should lock in profits or avoid further risk addition,” Wanda Research said.
Source: markets.businessinsider.com
